Purchase a stereo system at a local store

Assignment Help Basic Statistics

Reference no: EM13981606

Imagine yourself in the following two situations:

a You are about to go shopping to purchase a stereo system at a local store. Upon reading the newspaper, you find that another stereo store across town has the system you are interested in for $1089.99. You had been planning to spend $1099.95, the best price you had found after considerable shopping. Would you drive across town to purchase the stereo system at the other store?

b You are about to go shopping to purchase a popcorn popper at a local hardware store for $19.95, the best price you have seen yet. Upon reading the paper, you discover that a department store across town has the same popper for $9.99. Would you drive across town to purchase the popper at the department store?

Many people would drive across town to save money on the popcorn popper, but not on the stereo system. Why is this inconsistent with expected utility? What explanation can you give for this behavior?

Reference no: EM13981606

Questions Cloud

Find the normal forces nb and nt exerted on the sphere : It is permitted to roll down the incline which ends in the circular path of radius R on which it continues to roll. Assume perfect rolling at all times. Find the normal forces Nb and Nt exerted on the sphere when it is at the bottom and the top of..

Write an expression for the velocity of student at bottom : A student, m = 25.0 kg, swings from a rope, L = 5.72 m, which hangs above water, d = 2.5 m, when vertical. Write an expression for the velocity v of the student at the bottom of the swing.

What are the strengths and weaknesses of each : Briefly outline the development of the American banking system from the Goldsmiths to the modern Federal Reserve.

Explain why it is important to evaluate training efforts : Explain why it is important to evaluate training efforts. Describe the four basic categories (levels) of training outcomes, the controlled experimentation process, and how you would measure training impact

Purchase a stereo system at a local store : You are about to go shopping to purchase a stereo system at a local store. Upon reading the newspaper, you find that another stereo store across town has the system you are interested in for $1089.99. You had been planning to spend $1099.95, the b..

Would equilibrium still exist after the weights are added : The weights used in the lab are accurate to 1% of their stamped value. In parts 1 a) and 1 b) you estimated an uncertainty in the applied weight (the resultant vectors magnitude). Make a rough comparison of the expected uncertainty ( leq 1%) and t..

Discuss the purpose of job evaluations : Discuss the purpose of job evaluations. Compare and contrast job evaluations conducted for managerial positions versus hourly positions at a company

Draw a level 0 data flow diagram : Draw a level 0 data flow diagram (DFD) for the accompanying dentist office system. When new patients are seen for the first time, they complete a patient information form that asks for their name, address, phone number, and brief medical history,

What is the spring constant of the trampoline : If, when she lands on the trampoline, she stretches the trampoline down d = 0.75 m, what is the spring constant k in N/m of the trampoline?

User Account

All Pages